New Yorkers Could Get $500 Utility Rebate Checks Under New Budget Proposal

As New Yorkers continue to deal with some of the highest utility bills in the country, state lawmakers are floating a plan that could send hundreds of dollars back into residents’ pockets.

The proposal is part of the New York State Assembly’s 2026–27 budget plan, which includes a program called the Protecting Our Wallets Energy Rebate (POWER). If approved, millions of households across the state could receive a one-time rebate check to help offset rising energy costs.

Who Could Get a Rebate Check

Under the current proposal, eligibility would be based on household income:

• Up to $500 for households earning under $150,000

• Up to $300 for households earning between $150,000 and $300,000

Lawmakers estimate the plan would send about $2.6 billion in relief to roughly 5.4 million New York households.

Why Utility Bills Are So High

Electric and gas costs have been rising across the country, but New Yorkers have felt it especially hard. Several factors are contributing to the spike, including increased electricity demand nationwide and the need for expensive upgrades to aging energy infrastructure. A colder-than-usual winter also pushed heating usage higher.

Those rising costs have left many families struggling to keep up with monthly bills.

Other Changes Being Proposed

The Assembly’s budget proposal includes several additional measures aimed at lowering utility costs, including a two-year freeze on new electric and gas rate increases, and moving certain regulatory costs off monthly utility bills and into the state budget.

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The proposal also includes the creation of a commission to investigate the reasons behind rising utility prices and the establishment of a state Office of the Utility Consumer Advocate to represent ratepayers.

Lawmakers say the goal is to provide both immediate financial relief and long-term solutions to the affordability problem.

The Proposal Isn’t Final Yet

Right now, the rebate checks are not guaranteed.

The idea still has to survive negotiations between the State Assembly, State Senate, and Governor Kathy Hochul before the final New York State budget is approved. The deadline for that budget is April 1, 2026.

If the rebate program does make it into the final budget, payments could begin as early as late spring or early summer.

Would You Need to Apply?

Probably not.

If the program works like previous New York rebate or inflation relief checks, payments would likely be automatic for residents who filed their 2025 New York State tax return. The state would use tax information to determine eligibility and send either a check or direct deposit.

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If you live in Central New York and your heating or electric bill has made you question every life decision you’ve ever made this winter… you’re definitely not alone.

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This proposal is still in the negotiation phase, but if it passes, millions of New Yorkers could see some relief just in time for summer electric bills to start climbing again.